The 12 Days of Investing
Day 1 – Margin of Safety Benjamin Graham, believed by many to be the father of value investing, wrote in his book The Intelligent Investor, “Confronted with [the] challenge to distill the secret of sound […]
December 9, 2019
Glossary
Definitions and Glossary of Quantum Computing Terms
Extract from Deloitte Insights: Technology, Media, and Telecommunications Predictions 2019 and reproduced with the permission of Duncan Stewart, Director of Research and Erica Pretorius, Partner, Risk Advisory, Deloitte Canada. Classical computer: The traditional form of […]
October 28, 2019
The Tide Goes Out Investing
In extraordinary times, when markets are stressed the broad opportunity set widens. But from a psychological perspective, it sure doesn’t feel like an opportunity.“The tide goes out” in periods like the financial crisis of 2008-2009 […]
May 1, 2019
Needle in the Haystack Investing
In normal times, when markets are relatively tranquil the opportunity set is narrow. Armies of smart analysts and investors do their research and stocks are priced much more efficiently than less followed stocks. It’s challenging […]
May 1, 2019
Sharpe Ratio
Almost all investments come with an element of risk but does this risk contribute to your return? Sharpe ratio is one of the calculations available to investors to assess returns on a risk-adjusted basis – […]
October 4, 2016
Beta
Beta is a measure that investors can use when assessing a potential investment for volatility. Beta measures correlation to the market (or a benchmark) and how susceptible a stock or fund is to the fluctuations […]
October 4, 2016
Alpha
Alpha is the measure of a fund’s actual performance above its anticipated performance, as predicted by beta. Take the fund’s performance against its benchmark on a risk-adjusted basis to ascertain the excess. This relative outperformance […]
October 4, 2016
Risk
At Pender, we consider ourselves owners of a business, not just its stock, which means that when we think about risk we believe that real investment risk is not measured by fluctuations in a stock’s […]
October 4, 2016
Close the Discount
The classic investing advice is to “buy low and sell high”. The objective of investing in “Close the Discount” ideas is to buy a stock when it is trading at a substantial discount to a […]
July 30, 2015
Compounders
Compounding is one of the bedrock concepts of investing – “the ability to generate earnings from previous earnings”1. For us, “Compounders” are those companies that can internally compound their intrinsic value at a mid-teens annualized […]
July 30, 2015
Duration
Duration is a measure of a bond’s price sensitivity to a change in interest rates. It is a key factor in differentiating how funds are positioned for interest rate risk. The longer the duration (the […]
May 5, 2015
Active Share
Active share is a relatively new calculation1 and provides a measurement of whether or not a portfolio “hugs” an index or not, which is an indication of how actively a portfolio is being managed. An […]
February 27, 2015
Best Ideas
We often call the holdings in our funds our “best ideas”. This may seem obvious – why invest in anything else? The distinction is this. While we have lots of potential investment ideas, Pender manages […]
February 20, 2015
Too Hard Pile
The “too hard pile” is a phrase we first heard coined by Charlie Munger, Berkshire Hathaway, “At Berkshire we have three buckets: yes, no and too hard.” In order to find potential investments for our […]
February 20, 2015
Opportunistic
Being opportunistic in the world of finance is generally associated with an aggressive strategy to make money by taking advantage of something that is undervalued, vulnerable or depressed. Property, securities or companies are targeted, bought, […]
March 18, 2014
Special Situation
In finance a security that is labelled a “special situation” is generally undergoing a perceived value changing event such as a restructuring, merger or acquisition and even bankruptcy proceedings. The situation could have positive or […]
March 18, 2014
Circle of Competence
Warren Buffett and Charlie Munger said it best when they recommended that investors stay within their “Circle of Competence”. Your circle of competence is the knowledge base you have developed, over and above the average […]
March 18, 2014
Predictive Attributes
The phrase “predictive attributes” has been coined to describe a set of characteristics that a company may have that tip the odds in favour of potential outperformance. Some attributes that we believe are potentially predictive […]
March 18, 2014
Mr. Market
Mr. Market is the subject of a parable, created by Benjamin Graham, author of The Intelligent Investor and held by many as the father of value investing. He is an allegory for the stock market. […]
March 18, 2014
Volatility
Technically, volatility refers to the average difference between a stock’s expected and actual returns. The actual returns may be above or below what is expected or benchmarked, and diversifying a portfolio will smooth the overall […]
October 17, 2013
Value Investing
At its most simple, value investing is an investing strategy whereby investors buy a stock they believe to be undervalued (compared to an estimate of the company’s intrinsic value), with a view to profiting when […]
October 17, 2013
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